Question
In 2021, it was discovered that a company had debited expense for the full cost of an asset purchased on January 1, 2018. The cost
In 2021, it was discovered that a company had debited expense for the full cost of an asset purchased on January 1, 2018. The cost was $35 million with no expected residual value. Its useful life was 5 years and straight-line depreciation is used by the company. The correcting entry assuming the error was discovered in 2021 before the adjusting and closing entries includes:
Group of answer choices
a credit to an asset for $35 million
a debit to retained earnings for $14 million
a credit to accumulated depreciation for $14 million
a debit to an asset for $35 million
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